Investment Thesis
New Home Company Inc. (NWHM) is a firm focused on new generation home building targeting high-end, premium buyers in select communities in California. The company has been hit hard by the higher interest rate environment in recent years with its stock declining ~75% over the past 3 years. We believe there are potential tailwinds that may come into play for the company going forward; however, the stock still appears overvalued compared to peers. Investors should stay on the sidelines.
Source: Yahoo Finance
Company Overview
The company designs, constructs, and sells consumer-driven,